Fidelity National Financial, Inc. (FNF) Earnings & Analysis

Latest quarter

Fidelity National Financial reported adjusted earnings per share of $1.39 for Q2 FY2026, above the $1.26 consensus. Revenue as counted for the consensus comparison was $3.7 billion, below the $3.8 billion estimate; CFO Anthony Park said that revenue figure excluded net recognized gains and losses.

FNF reported total revenue of $4.1 billion, up from $3.6 billion a year earlier, while diluted earnings per share rose to $1.08 from $0.98. The filing said title premiums increased as more orders closed and the average fee per file rose. It attributed the increase in closed orders primarily to higher housing inventory and modestly lower mortgage rates.

FNF’s gross margin fell to 53.1% from 54.7%, and its operating margin declined to 8.34% from 10.5%. The filing said personnel and other operating costs increased in the Title segment. Free cash flow was $1.8 billion, compared with $1.9 billion a year earlier. Park said the holding company ended the quarter with $457.0 million in cash and short-term liquid investments.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CEO Mike Nolan said daily purchase orders opened increased from a year earlier, while refinance volumes remained responsive to mortgage rates. He said total orders averaged 6,200 per day in the quarter and 5,900 per day in July.

Nolan pointed to a commercial pipeline spanning several geographies and property types, including industrial, multifamily, retail and energy. He said the company closed 29 commercial transactions that each generated more than $1 million in premiums during the quarter. For the rest of the year, he expects commercial activity to continue but remains cautious about residential purchases and refinancing.

Nolan said recruiting and acquisitions typically bring expenses before revenue reaches full productivity. He expects those investments to contribute to modest compression in the adjusted pretax title margin in the second half. He also said FNF believes technology and AI tools can improve efficiency and fraud prevention in transaction workflows.

Asked about the value of the inHere platform, Nolan said it lets customers track orders without calling or emailing and passes information into FNF’s systems. He did not quantify the time saved per file. Asked whether technology-driven margin gains could bring pricing pressure, Nolan said regulators might respond if industry margins rose substantially, although the outcome was hard to predict.

Turning to F&G, CFO Anthony Park said the business recorded $2.7 billion in gross sales and $1.8 billion in core retail sales of indexed annuities and indexed life products during the quarter. Nolan said F&G is exploring strategic alternatives for its Peak Altitude distribution business and welcomed Conor Murphy as F&G CEO and president and Mike Bailey as its CFO.

Guidance

For the next 12 months, CFO Anthony Park said FNF expects $95.0 million to $100.0 million in Title and Corporate interest and investment income per quarter, assuming no Federal Reserve rate actions. He also expects approximately $28.0 million per quarter in F&G dividend income to the Corporate segment. CEO Mike Nolan expects modest compression in adjusted pretax title margin in the second half of FY2026.